DoD's $12.27M contract for computer systems design services awarded to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC
Contract Overview
Contract Amount: $12,274,713 ($12.3M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-08-31
End Date: 2010-09-30
Contract Duration: 1,856 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22302
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: Key points: 1. Contract value of $12.27M over 5 years suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. Services are categorized under Computer Systems Design, a critical area for modern defense operations. 5. The contract duration of 1856 days (approx. 5 years) allows for substantial project development and implementation. 6. Awarded by the Department of the Army, a major component of the DoD. 7. The contractor, JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC, has secured a substantial federal contract.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific service details or comparable contract data. However, a $12.27M award over five years for computer systems design services averages approximately $2.45M annually. This figure needs to be assessed against the complexity and scope of the systems designed. The firm fixed-price nature suggests that the contractor is responsible for cost overruns, which can be a positive indicator of value if the contractor manages costs effectively. Without more granular data on the specific services rendered and their market rates, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' which typically means all responsible sources were permitted to submit a bid. This suggests a robust bidding environment where multiple companies had the opportunity to compete for the work. The presence of 7 bidders (no) indicates a reasonable level of interest and competition for this contract. A higher number of bidders generally leads to more competitive pricing and better selection of qualified contractors.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and ensure the government receives the best value for its investment.
Public Impact
The Department of the Army benefits from enhanced computer systems design services, crucial for operational efficiency and modernization. Military personnel and support staff will likely experience improved IT infrastructure and capabilities. The contract supports the defense sector's technological advancement and readiness. Potential indirect benefits to the technology sector through the contractor's operations and potential subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the 'computer systems design services' makes it difficult to assess the true scope and potential for cost overruns.
- The firm fixed-price contract, while shifting risk, could lead to contractor corner-cutting if not adequately monitored.
- Limited information on the contractor's past performance specifically within this niche of computer systems design.
- The duration of the contract (5 years) might not align with rapidly evolving technology needs without clear modification clauses.
- The absence of small business subcontracting goals (sb: false) could limit opportunities for smaller firms in this contract's ecosystem.
Positive Signals
- Awarded through full and open competition with 7 bidders, suggesting a competitive process and potentially good pricing.
- The firm fixed-price contract type is generally favorable for cost control and risk management for the government.
- The contract is for computer systems design services, a critical area for modernizing defense capabilities.
- The contractor, JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC, is a known entity in government contracting.
- The contract duration of 1856 days allows for sustained effort and project completion.
Sector Analysis
The Computer Systems Design Services sector (NAICS 541512) is a vital component of the IT industry, encompassing the design of computer systems that integrate hardware, software, and communication technologies. This sector is characterized by rapid innovation and a high demand for specialized expertise. Federal spending in this area is substantial, supporting everything from enterprise resource planning systems to complex command and control networks. The market size is global and continues to grow, driven by digital transformation initiatives across all sectors, including defense. This contract fits within the broader trend of federal agencies modernizing their IT infrastructure to improve efficiency, security, and operational capabilities.
Small Business Impact
This contract does not appear to have a small business set-aside (sb: false), nor does it explicitly mention small business subcontracting requirements (st: VA, which is not a small business indicator). This suggests that the primary award was not targeted towards small businesses, and there may be limited mandated opportunities for small business participation as subcontractors. The absence of specific subcontracting plans could mean that small businesses might not directly benefit from this particular contract, potentially limiting their engagement within this specific federal spending stream.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature of the contract implies that performance monitoring is key to ensuring the contractor meets the defined scope and quality standards. Transparency is generally facilitated through contract award databases like FPDS. Accountability rests with the contractor to deliver services as specified and with the agency to manage the contract effectively and ensure compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Enterprise Resource Planning (ERP) Systems
- Defense Information Systems Agency (DISA) Contracts
- IT Services for Military Operations
- Computer Systems Integration Services
Risk Flags
- Contract duration may exceed the pace of technological change.
- Lack of specific service details limits value assessment.
- Potential for scope creep in fixed-price contracts if not managed tightly.
- Limited visibility into small business participation.
Tags
department-of-defense, department-of-the-army, it-services, computer-systems-design, full-and-open-competition, firm-fixed-price, johnson-controls-government-systems-llc, virginia, large-contract, 2005-award, defense-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.3 million.
What is the period of performance?
Start: 2005-08-31. End: 2010-09-30.
What specific computer systems were designed under this contract, and what was their intended purpose within the Department of the Army?
The provided data does not specify the exact nature of the 'Computer Systems Design Services' rendered under this contract. Typically, such services can range from designing new network architectures, integrating disparate software applications, developing custom database solutions, to planning the implementation of large-scale IT infrastructure. For the Department of the Army, these systems could be related to logistics, personnel management, intelligence analysis, battlefield communication, or administrative functions. Without further details, it's impossible to ascertain the specific systems or their precise operational impact. Further investigation into the contract's statement of work (SOW) or related documentation would be necessary to provide a definitive answer.
How does the awarded amount of $12.27M compare to similar computer systems design contracts awarded by the Department of Defense in the same period?
Comparing the $12.27M contract value requires context regarding its duration (5 years) and scope. Averaging approximately $2.45M per year, this falls within a moderate range for significant IT system design projects within a large federal agency like the Department of the Army. Larger, enterprise-wide system overhauls or integrations could easily exceed this amount, while smaller, more focused design tasks would be considerably less. To provide a precise comparison, one would need to analyze the average contract values for NAICS code 541512 awarded by the DoD between 2005 and 2010, filtering for similar contract durations and complexity levels. However, as a standalone figure, $12.27M represents a substantial investment in specialized IT services.
What is the track record of JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC in delivering computer systems design services to the federal government?
JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC has a history of federal contracting, though the specific details of their performance in 'Computer Systems Design Services' (NAICS 541512) are not fully elaborated in the provided data. Federal procurement databases would typically offer insights into their past awards, contract types, and performance ratings (if available). A deeper dive would involve examining their portfolio of previous government contracts, looking for similar service categories, contract values, and client agencies. Assessing their success with firm fixed-price contracts and long-duration projects would also be crucial. Without access to more comprehensive performance data, it's difficult to definitively assess their track record in this specific domain.
Given the firm fixed-price contract type, what are the potential risks associated with cost overruns or scope creep for this $12.27M award?
The firm fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor, JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. This generally benefits the government by providing cost certainty. However, risks remain. If the scope of 'Computer Systems Design Services' is not meticulously defined in the contract's Statement of Work (SOW), scope creep can occur, where additional requirements are added without corresponding price adjustments, potentially leading to disputes or the contractor seeking change orders. Furthermore, if the contractor underestimated the complexity or effort required, they might face financial losses, potentially impacting their motivation or ability to deliver the full scope. Robust contract management and clear SOW are crucial to mitigate these FFP risks.
How has federal spending on Computer Systems Design Services (NAICS 541512) evolved since this contract was awarded in 2005?
Federal spending on Computer Systems Design Services (NAICS 541512) has generally seen a significant upward trend since 2005, driven by the increasing digitization of government operations and the critical need for advanced IT infrastructure. Agencies across the board, including the Department of Defense, have prioritized investments in areas like cloud computing, cybersecurity, data analytics, and integrated systems. This contract, awarded in 2005 for $12.27M over five years, represented a substantial commitment at the time. Post-2010, spending in this sector has likely continued to grow, reflecting the ongoing digital transformation efforts and the ever-evolving technological landscape, with a greater emphasis on agile development, AI integration, and secure network solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 E MICHIGAN STREET, MILWAUKEE, WI, 04
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8703D0032
IDV Type: IDC
Timeline
Start Date: 2005-08-31
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-08-25
More Contracts from Johnson Controls Government Systems, LLC
- 200112!076614!1700!C7408 !naval Facilities Engineering Com!daca8797d0069 !a!n!*!n!ejp3 !20010927!20070630!076020440!076020440!006092860!n!johnson Controls Government SY!507 E Michigan Street !milwaukee !wi!53201!58310!111!06!port Hueneme Naval C!ventura !california!+000003192000!n!n!000000000000!r499!other Professional Services !S1 !services !2000!NOT Discernable or Classified !541330!*!*!5!A!S! !*!*!*!B!*!*!A! !A !U!J!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !z!a!a!a!000!a!b!n! ! ! ! ! ! !0001! — $175.8M (Department of Defense)
- Energy Savings Performance Contract for Hanford 200 and 200 Area — $130.5M (Department of Energy)
- Espc for the OAK Ridge National Laboratory — $75.7M (Department of Energy)
- National Capital Region 11 Energy Savings Performance Contract for the Installation of Energy Conservation Measures and Long Term Measurement and Verification Services — $64.8M (General Services Administration)
- Espc AT Naval Station Norfolk. Construction and Performance Period Services for Distributed Generation (co-Generation Plant) — $62.8M (Department of Defense)
View all Johnson Controls Government Systems, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)